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Published on November 15, 2007

 The National Legislative Assembly yesterday approved in principle the country's first Retail Business Act. However, there was concern that the act has little possibility of being passed during the current government's term as some in the analysis committee are opposed to it.

NLA members agreed by 97 votes to the principle of the draft act. Six members voted against and six members abstained.

Commerce Minister Krirk-krai Jirapaet said the act was necessary as the current law, covering city planning, was insufficient to control retail businesses.

"More than 100,000 small retailers have already shut down between 2001 and last year, making one million people jobless. At least 40 representatives from each province have filed a petition to the government asking for help to stop the aggressive expansion of giant retailers," he said.

"The act is therefore a must to ensure that small businesses survive, and to regulate retail and wholesales businesses under fair conditions."

The NLA agreed to go ahead with the legislation in spite of some calls to change details of the draft.

It also set up a new committee to be responsible for analysing certain aspects of the legislation. The government proposed 20 representatives for the committee. However, NLA member Sakchai Thanabunchai called for additional representatives, suggesting one should be Darmp Sukontasap, a senior vice president of Tesco Lotus.

Thailand Development Research Institute's honorary chairman Ammar Siamwalla was also proposed as a committee member, despite his disagreement with the draft.

Five NLA representatives debated in favour, while Ammar was the only NLA member to disagree with the draft.

Ammar said while he agreed that a retail business law was needed, this draft seemed powerless to regulate retailing.

Other sitting committee members consisted of four representatives from the government, 16 representatives from amongst NLA members and four representatives from outside, including Darmp, economist Sompop Manarungsan, Prawit Leesatapornwongsa and Somchai Pornrattanacharoen.

Other members included Board of Trade chairman Pramon Sutivong, Jit Siratranont and Central Group's Suthichai Chirathiwat.

An NLA source said it was very likely that the act would not be finished during the current government's term.

"The members of committees are supposed to have no conflict of interest, but some are executives of giant retailers, while some have already disagreed with the principle of the act," the source said.

 Petchanet Pratruangkrai

 The Nation